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21 Cards in this Set
- Front
- Back
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What is a purchase order? |
A purchase order (PO) is a commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services the seller will provide to the buyer. Sending a PO to a supplier constitutes a legal offer to buy products or services. |
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What is a delivery note? |
A document that accompanies a goods shipment and lists details about the goods delivered. A delivery note explains what the contents of a package are. If some goods that were ordered are not enclosed (due to lack of stock, unavailability, etc.) they will also be listed on the delivery note. |
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What is a goods received note? |
This is a record of goods received at the point of receipt. This record is used to confirm all goods have been received and often compared to a purchase order before payment is issued |
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What is an invoice? |
a list of goods sent or services provided, with a statement of the sum due for these - a bill (approx 30 days) |
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What is a credit note? |
This is a receipt given by a shop to a customer who has returned goods, which can be offset against future purchases. |
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What is computerised accounting? |
Computerised accounting systems are software programs that are stored on a company's computer, network server, or remotely accessed via the Internet. Computerised accounting systems allow you to set up income and expense accounts, such as rental or sales income, salaries, advertising expenses, and material costs. They also can be used to manage bank accounts, pay bills, and prepare budgets. Depending upon the program, some accounting systems also allow you to prepare tax documents, handle payroll, and manage project costing. |
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Advantages of computerised accounting |
No money spent on postage → make more profit or use money elsewhere Fewer errors made → calculations are done automatically → saves time Has extra passowrds and codes → stops unwanted people to view/search information Paper work cannot be lost as it is saved Customes can log into their account and check payment/orders |
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Disadvantages of computerised accounting |
Train staff to use the system → may take long → wastes time Computers can have problems/viruses → get it fixed → increases cost for business → may even lose documents Can make mistakes when typing in → impacts on related calculations and documents → need to start document again → wastes time Takes time to set up customs have to have unique numbers → tedious if businesses have one-off customers |
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What are start-up costs? Examples? |
These are the costs that are incurred before the business starts to trade. Short Term - Bank overdraft,Trade creditors,Short-term Bank loans, Factoring Medium Term - Bank loans, Leasing, Hire purchase, Government grants Long Term - Retained profits, Share capital, Venture capital, Mortgages, Long-term Bank loans |
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What are running costs? Examples? |
Running costs are the day-to-day costs associated with operating a business.
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Cash - Advantages |
payment completed straightaway ideal for small purchases convenient |
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Cash - Disadvantages |
has to be counted has to be locked away can be stolen |
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Debit Card Advantages |
guaranteed payment can be used online cheaper than cash to operate |
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Debit Card Disadvantages |
takes 3 days to be received a fee must be paid to the bank danger of fraud |
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Cheques Advantages |
safer than cash better for large amounts cheaper than cash |
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Cheques Disadvantages |
takes time to clear it can bounce |
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Credit Cards Advantages |
guaranteed payment used for online payment borrow money |
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Credit Cards Disadvantages |
takes 3 days to be received a fee must be paid to a bank high interest rates |
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Credit Transfers [BACS] What does this stand for? |
Banks Automated Clearing Service |
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Online Payment Systems - Name some Advantages |
Paypal, Apple Pay, Google Pay Quick, easy, no card required Many businesses and websites accept form of payment |
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Online Payment Systems Disadvantages |
If the account is hacked, financial information available to the hacker Some businesses may not accept online payment systems A small fee may be incurred |
